Mortgage

If you are thinking about buying or refinancing you should have your application in today. As of tomorrow new fed regs will go into effect. They will make it harder to borrow. Some examples are DTI will be reduced to 43%, Income will be more tightly analyzed, Self employed will also have to show business as well as personal returns. If your income is from a job but you own 25% or more of a business you will have to show tax returns for yourself and the business even if you receive no income from it.

The MBA expects to see a 35% drop in new mortgage origination for 2014. Expect to see Mortgage originators jumping ship looking for salaried positions. As the housing market recovers we will have issues with new MLOs trying to learn on the fly increasing errors and delaying or canceling closings.